Altisource Portfolio Solutions (Altisource), a provider of real estate, mortgage and technology services, polled 100 mortgage servicing professionals in attendance at the recent Five Star Conference and Expo in Dallas, the nation’s largest gathering of mortgage servicing professionals. The survey indicates that 38 percent of respondents believe offering more financing options to home buyers for auction properties will be a factor in attracting a more consumer-based audience.
This was followed by over a third of respondents, or 34 percent, who say education about the auction market and the use of real estate agents to promote auction properties will be needed to attract consumer interest in purchasing REO homes. Furthermore, 28 percent of respondents view having access to more robust market data and insights as the most important aspect to make the greatest impact in the REO market.
“The bank-owned real estate sector was largely untapped by individual home buyers until recently,” said John A. Vella, Chief Revenue Officer of Altisource. “Today, individual buyers can benefit from smart financing options like rehab financing, otherwise known as a FHA 203(k) loan, which bundles the home purchase price and renovation costs into a single mortgage. This is a huge step in the right direction because it can help buyers purchase affordable properties from the REO market, especially at a time when inventory is low and housing prices are continuing to climb.”
This evolution is really interesting in the context of affordability issues across the country and a maturing REO market coming together to boost homeownership.
The poll also found that 44 percent of participants are optimistic that continued low interest rates will encourage home buying and 39 percent of participants are optimistic about new financing options from lenders will broaden the buyer pool.